Cryptocurrency’s rise in the financial industry has changed a lot of things, but mostly to the benefit of consumers. One of its notable impacts is simplifying transactions and reducing processing times. This is proof of its importance which many experts have recognised and even pointed to the possibility that the digital currency would revolutionise the global banking system.
Some governments and central banks have become wary of its dominance, outperforming the traditional means of trading and payment methods. The point of comparison is the use of credit cards among customers now experiencing tight competition with Bitcoin payment services. Many ask, “Which one is more practical and better than the two?” This topic arouses interest among industry players and users, yet the two payment methods are still co-existing.
Some features make Bitcoin payment services more advantageous than their counterparts. On the one hand, credit cards offer things the former is still constrained to provide. Knowing about the pros and cons of each choice would ultimately guide consumers about the best preference. The following facts could shed light on what remains vague and unknown to many consumers.
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Understanding Bitcoin Payment Service
Bitcoin is the pioneer cryptocurrency that was launched to the public in 2009. Over the years, it has cemented its reputation and acquired dominance in the industry that now has thousands of other digital coins. Experts claim that this new currency is the most secure money on the Internet.
People can now make or receive payments using Bitcoin without divulging personal information linked to their accounts or wallets. Many businesses realise the potential of Bitcoin to grow their profits. Thus they have started offering payment-related services that make and receive crypto payments.
Bitcoin payment services allow merchants and businesses to receive payments in Bitcoins from clients for the goods and services being sold or delivered. In contrast with standard or debit card payment services, they are almost similar in function. Bitcoin payment services act as an intermediary layer between the payer and receiver for processing payments, and the financial transactions are also recorded on the blockchain ledger. This new technology benefits merchants as they can now accept Bitcoin payments through online or physical locations.
How Merchants Use Bitcoin Payment Service?
Through multiple platforms provided by Bitcoin payment services, merchants can conveniently accept the cryptocurrency for payments. These platforms are integrated with e-commerce tools like Shopify and Magento that enable in-store point-of-sale systems and direct payments within billing and accounting solutions.
Any client who signs up for a Bitcoin payment service can start receiving payments from other individuals via any transaction medium. It is even possible for a schoolboy to develop a mobile application and receive Bitcoin payments from global users by integrating the tool with appropriate software development. This means the possibilities are broad among those who want to take advantage of this new technology.
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Bitcoin Payment Services versus Credit Cards
Cryptocurrency users and ordinary customers would usually look at the advantages a new technology or product could offer before joining the trend. It’s common for people to compare Bitcoin payment services with credit cards because they are almost similar. But experts noted that the former is relatively cheaper due to lower transaction costs. For example, BitPay only charges a 1% settlement fee, lower than the 2% usually charged by the fiat currency credit card processing service.
Another advantage of Bitcoin payment services is that they allow a borderless payment network, enabling seamless Bitcoin transfer in any amount from any location. Clients can simply use their mobile phones or laptops to do the transaction anywhere in the world.
Likewise, such services are known for being transparent in Bitcoin’s highly dynamic exchange rates and the fiat currency. In other words, merchants who use Bitcoin payment services benefit from accepting global payments and enjoy a reliable and authentic identity in the growing virtual world of cryptocurrencies.
Is Bitcoin Payment Service a Threat?
Various agencies are trying to regulate cryptocurrency transactions based on the existing laws. This growing concern is seen as a factor affecting the movement of prices and even the stability of some crypto platforms. Some people consider this new currency beneficial to the economy, while others think it threatens the current financial system.
The increasing acceptance of Bitcoins shows that more and more people are taking advantage of its benefits. As a result, many industries are disrupted to consider the adoption of virtual currency to meet the demands of clients. Today, it is competing with credit card processing payments, and experts believe that the competition could even become more challenging for both players as innovations are being developed from time to time.
Conclusion
Many things have changed since Bitcoin payment services entered the business arena. This evolution will continue in the coming years and will likely improve the traditional payment services. Essentially, this technology offers more benefits than some may assume. It’s a win-win scenario for crypto developers, users, and businesses.
Risk Note:
Bitcoin and other cryptocurrencies are highly volatile, meaning their prices can change anytime. When using it for trading, it is best to consider all the factors at play to protect your interests. You may also access other resources dealing with this subject to learn more about the best practices!
